What are the conditions for Cornwell Quality Tools' approval of a franchise transfer?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |---|---|---| | | Franchise Agreement | | | m. Conditions for Cornwell approval of transfer | Section 11 | Active family member, in Cornwell’s sole discretion, for transfer of franchise on death or disability; satisfaction of debt, for assets | NOTE 6 - Your dealership is not transferable or assignable by you, either voluntarily or by operation of law, without Cornwell's written approval, which will not be unreasonably withheld. Cornwell may always transfer or assign its rights and obligations under the Franchise Agreement, however. You retain the right to assign or transfer your assets, subject to Cornwell's security interest. Cornwell may also in its sole discretion waive the prohibition against assignment of the dealership, to permit a succession of ownership within your family upon your death or disability, when the proposed successor has been active previously in the business.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–63)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, a dealership is not transferable or assignable without Cornwell's written approval, which, according to NOTE 6, will not be unreasonably withheld. However, Cornwell may transfer or assign its rights and obligations under the Franchise Agreement. The franchisee retains the right to assign or transfer their assets, subject to Cornwell's security interest.
Cornwell Quality Tools may waive the prohibition against assignment of the dealership, in its sole discretion, to permit a succession of ownership within your family upon your death or disability, when the proposed successor has been active previously in the business.
Item 17 also summarizes conditions for Cornwell Quality Tools' approval of a transfer as it relates to Section 11 of the Franchise Agreement. In the event of death or disability, transfer of the franchise to an active family member is possible, subject to Cornwell's sole discretion. Transfer may also be approved to satisfy debt, for assets.